Tomorrow’s boat owners Findings from landmark research on first-time boat buyers

1 Introduction

The future of our industry depends on our ability In 2000, first-time boat to bring more people into boating and reduce the attrition rate of current boat owners. Today, our buyers represented 42% of primary driver of growth is people who are in the all boat buyers. In 2015, they market to purchase their second, third, or even their fourth boat. This group of people is highly represented only 33% of all passionate and committed to boating, and they’ll boat buyers. That equates to keep coming back with little effort on the part of the boating industry. an overall decline of 37%.

But repeat buyers were once first-time boat buyers. And we’ve discovered a particularly disturbing trend among first-time boat buyers—there are fewer and fewer of them.

Boats Sold To First-Time Buyers

Pre-Owned % of All Boat Year New Boats Total Boats Buyers

2000 175,000 458,000 633,000 42%

2005 149,000 415,000 564,000 40%

2010 55,000 364,000 419,000 37%

2015 69,000 328,000 397,000 33%

Source: Info-Link Technologies, Inc. 2016

Introduction 2 Our industry is at a crossroads. We can choose the are, how they live their lives, what motivates them easy path: continue to hope that repeat buyers to own a boat, and ultimately, how they want to go will come to us. Or we can choose the road that about buying one. We’ll also share which barriers they secures our future: We can invest in the first-time encounter along the way, as well as what we all can boat buyer. do to help them more easily—and quickly—become first-time boat owners. We all support growth for the marine industry. But after the release of this data, we understand there’s a more important imperative, and by For a webinar that presents a working together, we can help reverse this trend.  summary of this data, along with Over the summer of 2016 and with the support short video vignettes of our first-time boat buyer segments, please visit: of our stakeholders, Discover Boating set out https://www.growboating.org/first-time- to learn all we could about the first-time boat boat-buyer-research.aspx buyer and understand how we, as an industry, can bring them into boating. From the moment they start dreaming about ownership to actually experiencing ownership, we wanted to know it all.

What we found is that we, the boating industry as a whole, often gets in our own way. The appetite for the first-time boat purchase is there, and it’s perhaps stronger and more widespread than ever before. But converting these dreamers into owners will require us, as an industry, to put ourselves in their shoes. We need to adapt to the way people want to shop and purchase boats—not how we want them to do so. And the responsibility doesn’t fall on just one group. Discover Boating, boat brands and dealers must work together if we’re to be successful.

The following report outlines the results and implications of this landmark research initiative on first-time boat buyers. We’ll share who they

Introduction 3 About Discover Boating The purpose of Discover Boating is to introduce new people to boating and to advance their exploration of ownership. We’re the industry’s national boating awareness campaign developed by the North American recreational boating industry to help get people on the water. Discover Boating programs focus on the boating experience and building interest in recreational boating by providing a resource for Americans to explore the benefits, accessibility and fun of the boating lifestyle. To find out more, visit DiscoverBoating.com.

About Grow Boating The purpose of Grow Boating is to identify growth opportunities within the marine industry, and champion those opportunities through consumer communications, targeted programs, and by developing industry education and resources. The Discover Boating program is one of several of Grow Boating’s areas of focus. To find out more, visit GrowBoating.org.

Introduction 4 Key Findings

Overall, this is the most comprehensive research From beginning to end, they move through five to date on the first-time boat buyer. Our goal with important stages. And these stages are highly this work was to understand the first-time boat emotional, filled with excitement but also buyer, identify how they move from “boating” to anxiety and disappointment. “owning,” and understand how we, as an industry, can support them. • Participation is the single greatest trigger of the first-time boat buyer’s desire to own. • The boating industry is at a crossroads. On the Nearly all can point to a specific trip when they surface, we’ve recovered from the recession. decided they wanted to own. It’s crucial that But every year, fewer people enter boating the industry supports participation efforts, for the first time and make it through the because it truly is the gateway to wanting to buying process. In fact, 400,000 fewer people own a boat. entered the boating category for the first time between 2010 and 2015 than from 2005 to • Once they decide to own a boat, they don’t 2010. This offsets the gain we made in owner immediately start shopping. In fact, they start retention: 300,000 fewer people exited the dreaming. How will they use the boat? Where category between 2010 and 2015 than 2005 will they go? Who will they go with? What will to 2010. life on the water look like for them? And the more detail they add to this dream, the more • There are six different kinds of first-time boat ready they become to actually start shopping. buyers. They all have different motivations for getting out on the water. Some seek • Getting advice from other people—either escape from stressful lives. Others like to friends, marina staff or dealers—is crucial to show off to their friends and family. Boating their purchase process, according to recent, is a longstanding family tradition for one first-time owners. But we found the majority group, whereas another is just beginning their of first-time boat buyers do not have people in own tradition. While one group simply enjoys their lives that they trust to give them advice tagging along on boating adventures, another on buying and owning a boat. group loves engines, horsepower and speed. The journey to ownership for the first-time • The way people shop has changed. Traditional boat buyer is different than for someone who leads will soon be extinct. In our study, two- is looking to buy their second or third boat. thirds of first-time boat buyers said they’d

Introduction 5 only give out personal information at the erodes the trust they have with the dealer, but point of purchase. That means you won’t also makes them question boat ownership get any traditional leads for two-thirds of altogether. Dealers have an opportunity to first-time buyers. But that doesn’t mean they increase buyers’ trust and close more deals aren’t there: They are shopping and collecting by educating them about the ins and outs of information on what dealers have to offer—but owning a boat earlier in the sales process and they’re doing it on their own terms, not yours. by offering purchase options that make boat ownership easy. • The boating industry has an opportunity to better meet first-time boat shoppers’ unique needs when it comes to purchasing. Today, many expect upon entering a dealership that they need to prepare for battle, arming themselves with information or even friends who are boat experts. And unfortunately, these expectations are sometimes fulfilled. In fact, 66% of people who stopped shopping for their first boat said they did not have a helpful experience at the dealership. This is where retail salespeople have an opportunity to set themselves apart and ultimately turn around these perceptions. By understanding the first- time boat buyer’s needs and better meeting them, they can convert a higher percentage of these buyers and make the purchase experience a pleasant one, thus increasing customer loyalty.

• First-time buyers are prepared to take on the investment of buying a boat. But it’s what they see as “hidden” costs that can derail their purchase. They often don’t learn about expenses like registration fees and maintenance costs until the last minute. This

Introduction 6 Table of Contents

CHAPTER 1: 08 Key terminology

CHAPTER 2: 10 The research approach

CHAPTER 3: 13 The six different types of first-time boat buyers

• Gear Guys • Merry Mates • Luxurious Leaders • Water Weekenders • Seclusion Seekers • Nautical Natives

CHAPTER 4: 34 The first-time boat buyer’s journey to boat ownership

• Develop • Desire • Dream • Decide • Do

CHAPTER 5: 63 Conclusion

Introduction 7 Chapter 1:

Key terminology

8 There are a few terms you’ll see frequently throughout this report. Here’s the definition of each.

First-time boat buyer (also referred to These are people who are interested in buying as first-time buyers): their first boat (new or used), but haven’t yet. This includes people who haven’t started shopping yet, as well as people who are actively shopping in a dealer.

Recent, first-time boat owner (also These are people who purchased their first referred to as “recent owner”): boat (new or used) within the last two years.

Lapsed, first-time boat shopper (also These are first-time boat buyers who were referred to as “lapsed shopper”): seriously shopping for their first boat (new or used), but stopped just short of purchasing.

Journey to ownership: Think of the journey to ownership as a purchase funnel, but from the first-time boat buyer’s perspective (not our own). It refers to the key stages people go through as they move from first thinking about owning a boat to actually buying one.

Chapter 1 Key terminology 9 Chapter : 2

The research approach

10 The research approach

Between May and September of 2016, we coupled that we didn’t have time to ask in the quantitative research with qualitative methods survey itself. This database annually that focused on enhancing our understanding surveys 25,000 people. of this group as real people—not just by their demographics or boat-buying behaviors. 2. Then, we conducted in-depth interviews of We infused our approach with ethnographic 20 people interested in buying their first boat, techniques developed within the field of across four markets (FL, NJ, PA and MN). anthropology. This rigor was essential to paint • Rather than interviewing people in a the full picture of who these people are and what research facility, we visited them in their makes them tick. own homes to see how they really lived their lives. After all, you can get a better 1. As part of our segmentation of first-time boat picture of a person and their values from buyers, we surveyed 2,000 people interested the photos on their refrigerator, the car in in buying their first boat (which we defined as a their driveway and the toys in their living powerboat, sailboat or a personal watercraft). room. • We surveyed people: • Interested in boat ownership 3. To understand how different people go about • Who have influence on household purchasing their first boat, we also conducted purchase decisions real-time mobile journaling with 75 participants • Are 24 and older over the course of two weeks. This included • Who have never personally a mix of people interested in buying their first purchased, nor owned a boat boat, as well as recent first-time boat owners. before • Through a special app, participants could • Who lived near saltwater and/or answer questions, take selfie videos or freshwater markets post photos from their experiences over • We modeled the survey’s results in 2015’s those two weeks. This allowed us to MRI Doublebase—the largest syndicated understand what people were doing and research database in the U.S. This how they felt as they shopped for a boat or unlocked a wealth of additional data on went boating in real time. people’s behaviors, values and activities

Chapter 2 The research approach 11 4. We also surveyed 550 people who recently bought their first boat (within the last two years). • This included new and used boat purchases, as well as people in saltwater and/or freshwater regions. Boats owned included powerboats, personal watercraft or sailboats.

5. Finally, we wanted to understand why people stop shopping for their first boat, so we surveyed 250 lapsed shoppers. These people were first-time boat buyers who were seriously shopping for their first boat, but stopped just short of purchase.

Chapter 2 The research approach 12 Chapter 3:

The six different types of first-time boat buyers

13 The six different types of first-time boat buyers

To identify the different types of first-time boat driven by things like social orientation, personal buyers, we looked at the data in several different history with boating, motivations to go boating in ways. We found demographic information, like general, and finally, by their approach to planning how old someone is, or how much money they experiences. make, or even what generation they are, is not an accurate predictor of whether or not they will become first-time boat owners. People from all generations and all income levels are interested in buying their first boat. The same is true by boat type or activity, as first-time boat buyers buy all different kinds of boats (including personal watercraft and sailboats).

A much more differentiating—and compelling— way to categorize first-time boat buyers was by their mindset. This means exploring factors like their motivations for owning, how they spend their free time, how they plan trips with family and friends, whether they are socially oriented or soloists, etc.

As it turns out, there are six distinct mindsets among first-time boat buyers that transcend generation, incomes, boat types and even geography. These mindset differences are

Chapter 3 The six different types of first-time boat buyers 14 Gear Guys

Key Demographics

• Population: 14.6 Million • 72% Male, 28% Female 17% • 107 Millennial Index* • $65.5K HHI of first-time boat buyers • 92 Kids at Home Index • 80% Caucasian Summary: • 68% Employed, 10% Retired They’re young men and women motivated by • 50% Married 93 Index hobbies with specialized equipment. The Gear Guys are intrigued by the tech and the specs. In their own words: They crave details, so when they’re ready to buy a boat, they want to talk to the experts. “It’s more about the boat than the water. My ego For the Gear Guys, it’s not about being on the wants the coolest toy. It’s about having the coolest water—it’s about the boat. thing. It’s the toy.” – Male, 38, first-time boat buyer, Gear Guy

To watch a short video “I’d need to get a bigger vehicle to carry the boat on this segment, visit:  around.” – Male, 45, first-time boat buyer, https://www.youtube.com/ Gear Guy watch?v=BzFyS-wWMTg&list=PLE- bo2m1jc3tR9GGMGEq5JQCSt-hRr- b2oM&index=3 “If we bought it [jet ski] new, I wouldn’t do the maintenance. If we buy it used, I’ll probably do it. I can find someone to help me if I need to, and the parts are things I can get anywhere.” – Male, 25, first-time boat buyer, Gear Guy

*An index shows how this segment compares to the other segments. The higher the index is over 100, the more likely this segment is to have this trait. The lower the index is below 100, the more likely this segment is to NOT have this trait.

Chapter 3 The six different types of first-time boat buyers: Gear Guys 15 Leisure Time and Activities Big Ticket Purchases: What they buy Though this group has the least leisure time of all the segments, they are relatively content with the amount they do get. They tend to prioritize work over Automotive leisure time, relative to other segments. They likely own automobiles that are heavy-duty utility vehicles and sport Leisure activity participation in the last performance types. three months, or high index: • Dodge Ram Pickup 226 index • Fishing 33% • Subaru Impreza WRX 385 index • Camping 19% • Chevrolet Camaro 250 index • Biking (Motorcycle) 10% / 168 index • Hunting 5% / 164 index

Travel

Weekly Leisure Time They are the lightest travelers of all segments. They tend to stay in mid-/ low-scale hotels and motels. • Travel Spend 83 index • Econolodge 174 index • Motel 6 156 index • La Quinta Inns & Suites 132 index

27% 21% 10% 33% 9% Consumer Electronics

They spend an average amount on television purchases and are keen to • 10 hrs or less • 11–20 hrs have a nice home theater. • 21–30 hrs • 31–40 hrs • TV Spend 98 index • More than 40 hrs • Home Theater System 105 index • Sony 118 index • Philips 124 index

Chapter 3 The six different types of first-time boat buyers: Gear Guys 16 Here’s how we can help them

Gear Guys really care most about the gear: It’s about the machine, its inner workings and performance. We can certainly help feed their passion. Whether it’s a factory tour or workshops on maintenance, we can give them hands-on experience with the boat they want to buy, as they’ll definitely appreciate some time “under the hood.”

They’ll want to talk to people who actually own the boat they want to buy, from experts to other owners. They have a high respect for this type of opinion and beyond that, will really enjoy the discussion. We can offer them independent viewpoints by connecting them with owner forums or ambassador programs to help them get the pro perspective.

Finally, they’ll drive a hard bargain. This isn’t their first rodeo: They have experience buying big-ticket leisure items, so be prepared for someone who knows how to negotiate.

Chapter 3 The six different types of first-time boat buyers: Gear Guys 17 Merry Mates

Key Demographics

• Population: 13.7 Million • 50% Male, 50% Female 16% • 107 Millennial Index* of first-time boat buyers • $70K HHI • 112 Kids at Home Index • 87% Caucasian Summary: • 66% Employed, 10% Retired Family is at the core of everything they do— • 53% Married 100 Index especially their activities. When it comes to boating, Merry Mates rarely plan events, but they love coming along for the ride. Merry In their own words: Mates are tagalong boaters. They live in boating communities, have friends with access “[When I’m on the boat I] Just go with the flow, I’m to a boat, and have people in their lives that not very aggressive, we’ll just go out, laid back, care know a lot about boating. They’re more likely free, whatever!” – Female, 42, first-time boat buyer, being invited out on a weekend boating outing Merry Mate than planning one by themselves. For them, boating is a way to hang out with friends and “My cousin has a boat in Palm Harbor, so we’ll go family. They spend time on the water to have with them.” – Female, 34, first-time boat buyer, fun and enjoy the company of their loved ones. Merry Mate

*An index shows how this segment compares to the other segments. The higher the index is over 100, the more likely this segment is to have To watch a short video this trait. The lower the index is below 100, the more likely this segment  on this segment, visit: is to NOT have this trait. http://www.youtube.com/ watch?v=BzFyS-wWMTg&t=2m36s

Chapter 3 The six different types of first-time boat buyers: Merry Mates 18 Time and Activities Big Ticket Purchases: What they buy Leisure time is a big priority for Merry Mates, though they have an average amount of it. Spending time with friends/family is a big priority. Automotive

They own family-friendly vehicles such Leisure activity participation in the last as minivans. Their vehicle models are three months, or high index: multipurpose and able to handle both • Hiking 38% passengers and belongings. • Fishing 33% • Dodge Caravan 167 index • Jet Skiing or Other PWC 6% • GMC Sierra 310 index • Chevrolet Tahoe 234 index • Scrapbooking index 131 • Zumba index 129

Travel

Weekly Leisure Time They are light, domestic travelers who prefer mid-scale, comfortable accommodations. • Travel Spend 97 index • Bed & Breakfast 163 index • Double Tree 212 index • Extended Stay America 228 index

27% 17% 10% 37% 8% Consumer Electronics

They are average spenders when it comes to televisions and they lean • 10 hrs or less • 11–20 hrs toward mid-/low-range brands. • 21–30 hrs • 31–40 hrs • TV Spend 104 index • More than 40 hrs • JVC 120 index • Philips 111 index • Vizio 110 index

Chapter 3 The six different types of first-time boat buyers: Merry Mates 19 Here’s how we can help them

Merry Mates are excited about the boat, but there’s likely someone else in the house driving the purchase. They will most likely tag along with a partner or a spouse when they walk into a dealer. However, this doesn’t mean they aren’t an integral part of the decision-making.

They’re excited about starting a new family tradition. Get them excited about the memories they’ll make on the water—perhaps include a discounted waterproof camera with purchase or free kids’ boat toys.

They’ll also care more about the practical side of ownership—from the boat registrations to the insurance to quite possibly where to store the boat they want to buy. Help simplify these considerations with checklists, or help them make all of these purchases in one place.

And because they will have a bit more of a pragmatic approach to owning the boat, they are going to have a better handle on the financials. Help them understand that it can actually fit into their monthly budget—be willing to work with them to make it happen.

Chapter 3 The six different types of first-time boat buyers: Merry Mates 20 Luxurious Leisurers Key Demographics • Population: 15.1 Million • 68% Male, 32% Female • 75 Millennial Index* • $79.4K HH 18% • 89 Kids at Home Index • 70% Caucasian of first-time boat buyers • 68% Employed, 13% Retired • 56% Married 105 Index Summary: The Luxurious Leisurers are image-conscious and surround themselves with the finer things. In their own words: They are always up for trying a new hobby or “When I get a boat, everybody will want to be my activity, and for them, boating is a way to try friend.” – Male, 38, first-time boat buyer, something new. The primary benefit of owning Luxurious Leisurer a boat is the achievement, which gives them a boost in status. A boat means they’ve made it “It may sound silly, owning a boat is almost a in life. dream—it’s not something everyone can afford or take care of. But when he said that could be us, we could be on the boat hanging out. You’re serious? To watch a short video We can really do that? Absolutely. Since then, we  on this segment, visit: talk about it at least once a week, we always say https://www.youtube.com/ watch?v=r9nHbvlO3gw&list=PLE- it. He’s going to help make that dream come true, bo2m1jc3tR9GGMGEq5JQCSt-hRr- we haven’t stopped talking about it.” – Female, 33, b2oM&index=4 first-time boat buyer, Luxurious Leisurer

“There is something about being on the water that makes you feel like you are king of the world.” – Male, 52, first-time boat buyer, Luxurious Leisurer

*An index shows how this segment compares to the other segments. The higher the index is over 100, the more likely this segment is to have this trait. The lower the index is below 100, the more likely this segment is to NOT have this trait.

Chapter 3 The six different types of first-time boat buyers: Luxurious Leisurers 21 Time and Activities Big Ticket Purchases: What they buy This segment often prioritizes work over their leisure time. They get an average amount of leisure time, and tend to exercise in their down time Automotive more so than other segments. They own vehicles that make a statement with powerful and bold Leisure activity participation in the last characteristics. three months, or high index: • Ford Mustang 206 index • Camping 19% • Lexus RX 358 index • Golfing 15% • Dodge Magnum 567 index • Boating (With a Motor) 14% • Biking (Motorcycle) 6% Travel

• Art Gallery index 110 They are domestic and foreign • Cross-Country Skiing index 182 travelers who stay in nicer mid-scale chain hotels: This is likely because they’re traveling for work. Weekly Leisure Time • Travel Spend 110 index • Crowne Plaza 170 index • Clarion 200 index • Fairfield Inn by Marriott 175 index

Consumer Electronics

They spend the most on televisions 25% 18% 8% 38% 9% than any other group and are likely to invest in a quality sound system. • TV Spend 106 index • 10 hrs or less • 11–20 hrs • Sanyo 134 index • 21–30 hrs • 31–40 hrs • Toshiba 124 index • More than 40 hrs • Surround Sound 110 index

Chapter 3 The six different types of first-time boat buyers: Luxurious Leisurers 22 Here’s how we can help them

Before they even open their mouths, you’ll be able to see a Luxurious Leisurer coming from the car they are driving and how they are dressed. They’re going to have a statement vehicle and they might have the nice watch or fancy handbag to go along with it. They’ve dressed up, for this is a moment they’ve been dreaming about for a long time, so be sure to celebrate with them. Their dream is finally coming true—owning a boat is a sign that they’ve “made it” in life—so recognize the specialness of this moment for them.

They’re not going to know a lot about the boat they want to buy. These people are all about the dream. So educate, but don’t overwhelm them. Focus on the big picture: how they can show the boat off, what will help them entertain, and what is most critical to know about operating it. In other words, keep it simple and relevant.

Their expectations tend to be a bit inflated. This doesn’t mean that they are less likely to buy a boat, or that they’ll buy an inexpensive one. No matter the price range, their eyes are a little larger than their wallets. So focus on affordability and simplicity during the buying process.

Chapter 3 The six different types of first-time boat buyers: Luxurious Leisurers 23 Water Weekenders Key Demographics

• Population: 19.2 Million • 56% Male, 44% Female 23% • 86 Millennial Index* of first-time boat buyers • $88.3K HHI • 105 Kids at Home Index • 80% Caucasian Summary: • 69% Employed, 9% Retired These people enjoy being by or on the water. • 57% Married 108 Index While they love the water, they didn’t grow up boating: Their love of it was discovered relatively recently. They participate in many In their own words: different on-the-water activities like tubing, cruising, fishing and water-skiing, in part “I don’t remember as a kid going out on somebody because they live nearby and have plenty of that I knew’s boat like a parent or a relative. I don’t friends with access. They’re planners who remember doing that as a kid.” love to organize boating outings with friends – Male, 43, first-time boat buyer,Water Weekender and family. They treat boating like an event, rather than an everyday activity. For Water “We started renting boats three years ago. Weekenders, owning a boat is driven by their It was my idea!” – Female, 55, first-time boat desire to host friends and family. buyer, Water Weekender

“I like going to the beach, spending time on boats,

To watch a short video relaxing, taking the boat out for the day, taking some  on this segment, visit: drinks, fishing …” – Male, 32 , first-time boat buyer, http://www.youtube.com/ Water Weekender watch?v=r9nHbvlO3gw&t=3m46s

*An index shows how this segment compares to the other segments. The higher the index is over 100, the more likely this segment is to have this trait. The lower the index is below 100, the more likely this segment is to NOT have this trait.

Chapter 3 The six different types of first-time boat buyers: Water Weekenders 24 Time and Activities Big Ticket Purchases: What they buy Water Weekenders have a moderate amount of leisure time, and they spend it in many different ways. They try to make the most of it and wish they had Automotive more free time. They are likely to own luxury vehicles, but may not be the showiest in the lot. Leisure activity participation in the last They tend to own vehicles that are three months, or high index: mid-size and multipurpose. • Hiking 38% • Cadillac CTS V 466 index • Boating (With a Motor) 15% • Honda Pilot 281 index • Toyota Tundra 224 index • Canoe/Kayak/Rowing 11% • Jet Skiing/Other PWC 5% • Biking index 116 • Host a Party index 106 Travel

They are heavy travelers, especially to foreign destinations, and they stay Weekly Leisure Time in upscale hotels. • Foreign Travel Spend 131 index • Four Seasons 191 index • Wingate 150 index • Sheraton 140 index

Consumer Electronics

They spend an average amount on 25% 22% 9% 38% 6% television purchases and are more likely to own a Smart TV. • TV Spend 102 index • 10 hrs or less • 11–20 hrs • Sharp 124 index • 21–30 hrs • 31–40 hrs • Sony 106 index • More than 40 hrs • Smart TV 106 index

Chapter 3 The six different types of first-time boat buyers: Water Weekenders 25 Here’s how we can help them

It’s more likely that the Water Weekenders are relatively recent boaters. They didn’t grow up boating, but that doesn’t diminish their love of it.

For them, this is the beginning of a new tradition. So involve their family in the buying process, or help them name the boat; be sure to really mark this occasion for them.

They are more interested in the classic boating activities than the boat itself. So we can help them do more of what they love: tubing, fishing, cruising, watersports. From highlighting all the activities they can do on their boat, to actually teaching them how to hook up a tube or water skier, dealers have the power to help Water Weekenders make the most of their boats.

And they frequently experience boating via renting. Show them the benefits of owning versus renting. They might not realize that as frequently as they are going, buying can be a legitimately better option for them.

Chapter 3 The six different types of first-time boat buyers: Water Weekenders 26 Seclusion Key Demographics Seekers • Population: 10.6 Million • 75% Male, 25% Female • 115 Millennial Index* • $74.5K HHI • 94 Kids at Home Index • 82% Caucasian 12% • 74% Employed, 9% Retired of first-time boat buyers • 50% Married 94 Index

In their own words: Summary: Seclusion Seekers are nature lovers. Their “My favorite thing about the boat is the unsullied daily life is stressful and full of obligations. access to nature … To be out there and surrounded Seclusion Seekers escape to the great by it.” – Female, 36, first-time boat buyer, outdoors through activities like hunting, hiking, Seclusion Seeker camping or kayaking. For them, boating is about getting away from the daily grind and “[I like] Fishing. Connecting with nature, just like connecting with nature on the water. And hunting. You aren’t just out there to kill or eat they’re into more “active” boating experiences, something, you’re out in the woods on the water, ones that give them a bit of a workout. the peacefulness, it just feels good. People have to experience it for themselves.” – Male, 32, first-time boat buyer, Seclusion Seeker To watch a short video  on this segment, visit: “I’m a nature guy. I grew up in the country. The https://www.youtube.com/ watch?v=DJ7VSfS2_pc&list=PLE- suburbs are okay, but city—where’s my fresh air? I bo2m1jc3tR9GGMGEq5JQCSt-hRr- do feel more alive in nature. This just seems right, b2oM&index=5 more relaxed, no stress, not a million people going around, it’s just simple … Something about being out on the lake in the sun.” – Male, 29, first-time boat buyer, Seclusion Seeker

*An index shows how this segment compares to the other segments. The higher the index is over 100, the more likely this segment is to have this trait. The lower the index is below 100, the more likely this segment is to NOT have this trait.

Chapter 3 The six different types of first-time boat buyers: Seclusion Seekers 27 Time and Activities Big Ticket Purchases: What they buy Seclusion seekers have a lot of leisure time, getting 40+ weekly hours more than any other segment. They prefer more solo, active activities, and to just Automotive do nothing and relax. They own basic and practical vehicles. They tend to own vehicle types that Leisure activity participation in the last are compact and functional, such as three months, or high index: sedans and pickup trucks. • Biking/Cycling 32% • Honda Accord 164 index • Camping 19% • Toyota Tacoma Pickup 294 index • Chevrolet Monte Carlo 488 index • Canoe/Kayak/Rowing 11% • Marathons index 119 • Backpacking index 106 Travel

They are light, mainly domestic Weekly Leisure Time travelers who stay in mid-scale, chain properties. • Travel Spend 84 index • Embassy Suites 124 index • Hilton Garden Inn 200 index • Comfort Inns 119 index

Consumer Electronics

27% 19% 14% 33% 6% Out of all groups, they spend the lowest amount on televisions and may not even own a TV. • 10 hrs or less • 11–20 hrs • TV Spend 96 index • 21–30 hrs • 31–40 hrs • RCA 120 index • More than 40 hrs • Panasonic 105 index • Do Not Own TV 113 index

Chapter 3 The six different types of first-time boat buyers: Seclusion Seekers 28 Here’s how we can help them

They’re passionate about outdoor activities like hiking, hunting, fishing, camping and, of course, boating. We can help them better escape to the great outdoors on a boat. Discounts on outdoor experiences, partnerships with outdoor brands, and area boating guides to the quietest destination on the lake will get them really excited about boating’s possibilities.

Additionally, they’re not going to have big demands for the boat they want to buy. For Seclusion Seekers, the boat is a means to an end: connecting with nature. Because they won’t necessarily have thoroughly sophisticated desires, don’t bore them with all of the details. They just really want a boat that’s going to get them outside.

Finally, they are unlikely to understand fully what ownership entails. It’s probably not something they’ve spent time thinking about. You have the power to help them be great boat owners: give them an ownership guide, featuring checklists or recommended local maintenance locations.

Chapter 3 The six different types of first-time boat buyers: Seclusion Seekers 29 Nautical Natives Key Demographics

• 11.9 Million • 57% Male, 43% Female 14% • 112 Millennial Index* of first-time boat buyers • $72.4K HHI • 108 Kids at Home Index • 83% Caucasian Summary: • 67% Employed, 12% Retired For Nautical Natives, boating is more than • 53% Married 100 Index just a part of their everyday lives; it’s a family tradition, as they grew up boating. For them, In their own words: boating is an inclusive activity and they are driven by the new memories they make on the “I have a lot of memories of boating. My wife and water, and the nostalgia they have for boating I have been talking about those a lot. We had nice itself. They see themselves as true boating experiences growing up. We want to give him [our experts. Nautical Natives are true believers of son] similar or better experiences and go out on the boating and everything it has to offer. water whenever we want.” – Male, 30, first-time boat buyer, Nautical Native

To watch a short video “I want a fast boat—a speed boat—that type. I love on this segment, visit:  tubing. It’s something I did every summer as a kid http://www.youtube.com/ in Wisconsin.” – Female, 45, first-time boat buyer, watch?v=DJ7VSfS2_pc&t=3m18s Nautical Native

“We have a friend, when we want to go on the boat, we just call him. He’s not the ‘boater.’ I keep him in check.” – Male, 37, first-time boat buyer, Nautical Native

*An index shows how this segment compares to the other segments. The higher the index is over 100, the more likely this segment is to have this trait. The lower the index is below 100, the more likely this segment is to NOT have this trait.

Chapter 3 The six different types of first-time boat buyers: Nautical Natives 30 Time and Activities Big Ticket Purchases: What they buy This group is the most satisfied with the amount of leisure time they get in their lives. This group is also very scheduled, preferring to schedule their leisure time Automotive in advance. They are likely to own imported cars that are mid-priced and dependable. Leisure activity participation in the last • Toyota Rav4 276 index three months, or high index: • Honda Civic 164 index • Fishing 33% • Toyota Camry 145 index • Camping 19% • Boating (With a Motor) 15% • Watersports/Tubing 4% Travel

• Bowling 118 index They are mid to heavy travelers domestically and stay in high-scale hotels. Weekly Leisure Time • Domestic Travel Spend 114 index • Westin 163 index • Fairmont 278 index • Renaissance 167 index

Consumer Electronics

They spend an average amount on televisions with a focus on quality 27% 21% 10% 33% 9% and budget brands. • TV Spend 99 index • LG 119 index • 10 hrs or less • 11–20 hrs • Hitachi 130 index • 21–30 hrs • 31–40 hrs • 3D TV 119 index • More than 40 hrs

Chapter 3 The six different types of first-time boat buyers: Nautical Natives 31 Here’s how we can help them

Nautical Natives go boating frequently because for them, it’s in their DNA. They want to be on the water as much as possible. Fuel their passion for boating by getting them out on the water because it’s where they love to be. From test drives to partnership programs to rental discounts, do whatever you can to fan the flame.

Nautical Natives are going to talk about their childhood boating experience. This is the group that’s most likely to have grown up with a boat, and possibly have generations of boaters within their family. Celebrate this next chapter of their boating tradition. After all, this could be the second or third generation boater. For them, becoming a boat owner is a rite of passage.

Finally, they know the ins and outs of boating, and that can be a good thing; you may not have to spend a lot of time teaching them. Or it can be a bad thing; they might want to test your knowledge! Regardless, honor their expertise, but realize you have the opportunity to expand it. They might think that they know it all, but then again, maybe they don’t.

Chapter 3 The six different types of first-time boat buyers: Nautical Natives 32 The six segments of first-time boat buyers: how they compare

Size of First-Time BuyerMale:Female Group Married Kids Index Millennial Index Average HHI

Gear Guys The Gear Guys are young men motivated by hobbies with specialized equipment. They are intrigued by the tech and 17% 72:28 50% 92 107 $65.5K the specs. They crave details, so when they’re ready to buy a boat, they want to talk to the experts. For the Gear Guys, it’s not about being on the water—it’s about the boat.

Merry Mates For Merry Mates, family is at the core of everything they do— especially their activities. When it comes to boating, Merry Mates rarely plan events, but they love coming along for the ride. Merry Mates are tagalong boaters. They live in boating communities, have friends with access to a boat, and have 16% 50:50 53% 112 107 $70K people in their lives that know a lot about boating. They’re more likely being invited out on a weekend boating outing than planning one by themselves. For them, boating is a way to hang out with friends and family. They spend time on the water to have fun and enjoy the company of their loved ones.

Luxurious Leisurers The Luxurious Leisurers are image-conscious and surround themselves with the finer things. They are always up for trying a new hobby or activity, and for them, boating is a way 18% 68:32 56% 89 75 $79.4K to try something new. The primary benefit of owning a boat is the achievement, which gives them a boost in status. A boat means they’ve made it in life.

Water Weekenders Water Weekenders enjoy being by or on the water. While they love the water, they didn’t grow up boating: Their love of it was discovered relatively recently. They participate in many different on-the-water activities like tubing, cruising, fishing and water-skiing, in part because they live nearby and have 23% 56:44 57% 105 86 $88.3K plenty of friends with access. They’re planners who love to organize boating outings with friends and family. They treat boating like an event, rather than an everyday activity. For Water Weekenders, owning a boat is driven by their desire to host friends and family.

Seclusion Seekers Seclusion Seekers are nature lovers. Their daily life is stressful and full of obligations. Seclusion Seekers escape to the great outdoors through activities like hunting, hiking, 12% 75:25 50% 94 115 $74.5K camping or kayaking. For them, boating is about getting away from the daily grind and connecting with nature on the water. And they’re into more “active” boating experiences, ones that give them a bit of a workout.

Nautical Natives For Nautical Natives, boating is more than just a part of their everyday lives; it’s a family tradition, as they grew up boating. For them, boating is an inclusive activity and they are driven by the new memories they make on the water, and the 14% 57:43 53% 108 112 $72.4K nostalgia they have for boating itself. They see themselves as true boating experts. Nautical Natives are true believers of boating and everything it has to offer. 33 Chapter 4:

The first-time boat buyer’s journey to ownership

34 Now that we understand “the who,” let’s look at “the how.” 1 Develop

Life experiences form an affinity In addition to identifying the six different types for boating. of first-time boat buyers, we also identified how they become first-time boat owners. Their journey to ownership is different than it is for someone who is looking to buy their second or 2 Desire third boat. No matter the segment, they move A spark ignites the desire for through five important stages. These stages boat ownership. are highly emotional, filled with excitement, but also anxiety and disappointment.

3 Dream

They start to imagine their life on the water.

4 Decide

They navigate the realities of buying and owning.

5 Do

They experience the joy of ownership.

Chapter 4 The first-time boat buyer’s journey to boat ownership 35 1 Develop

Life experiences form an affinity for boating.

This is where it all begins; Develop is the very first stage that people go through on their journey to boat ownership. It’s also a passive stage, where people haven’t decided that they want to own a boat. They are not actively looking for information on boat ownership. In fact, this stage can last anywhere from a few months to a few decades. 2. People who have friends that go boating It’s different for each person, and it’s difficult to People who have friends that have access predict how long it will actually take. to boats were also more likely to end up considering buying one. That said, there are four types of experiences • 41% of people interested in buying their that first-time buyers and owners have in their first boat have friends who had access to backgrounds. These experiences can be great a boat predictors of someone who may one day become • 50% of recent, first-time owners had a boat owner. We call them the “gateways to friends who had access to a boat boat ownership,” because it’s through these experiences they develop an affinity for boating. 3. People who participate in outdoor activities or water-related activities 1. People who went boating in their childhood Both first-time buyers and first-time owners Childhood boating is very prevalent participate in outdoor activities or non- among first-time buyers, and not just for boating/water-related activities. Getting the Nautical Natives. It tells us that these outside and getting out on the water—even positive experiences of growing up boating without a boat—helped motivate people to are a powerful motivator for buying a boat in eventually buy. It’s important for people to adulthood. develop personal values around outdoor time, • 48% of people interested in buying their or on-the-water time, as it’s one of boating’s first boat grew up with relatives who had core benefits. Non-boating water activities access to a boat include canoeing, kayaking, paddle boarding • 51% of recent, first-time owners grew up in and fishing. a household with access to a boat • 71% of people interested in buying their

Chapter 4 The first-time boat buyer’s journey to boat ownership 36 first boat participated in outdoor activities What we didn’t hear about was also surprising. like camping, hiking and/or biking in the • There was very little overlap between first- last year time boat owners and boat club members, • 55% of people interested in buying their indicating that this may not be a gateway to first boat participated in non-boating, first-time ownership—yet. Very few first-time water-related activities in the last year buyers and owners had, at any point in their lives, been a member of a boat club. Only 4% 4. People who have on-the-water of recent owners were a boat club member at experiences while on vacations one point. From Caribbean cruises to fishing charters • When surveying lapsed, first-time boat to dinner cruises, first-time buyers and shoppers, we found that none decided to join owners had lots of on-the-water time while a boat club rather than buy a boat. on vacation. What’s surprising is they didn’t • There is still much to be learned about the need to be on a recreational boat or on a relationship of boat clubs to the first-time boat that they could eventually buy to propel buyers as their popularity and accessibility their excitement for being on the water. grow. While we don’t see a significant link to Rather, it was different types of on-the-water first-time buyers, we expect this may change adventures that ignited their passion. as the penetration of boat clubs across the • 42% of people interested in buying their country increases. first boat have gone on vacations where boating was a major part of the trip. • 35% of recent, first-time boat owners had gone on vacations where boating was a major part of the trip.

Chapter 4 The first-time boat buyer’s journey to boat ownership 37 2 Desire

A spark ignites the desire for boat ownership.

The Desire phase is what shifts their “desire” to own into high gear. It’s in this stage where they move from a passive state to actively desiring a boat for themselves. This stage is crucial, as it’s the one where they decide they want to own a boat—it’s the first moment they realize boat ownership can be something they can attain.

What flips this switch for people? A boating moment, a singular trip—it’s while on a boat they decide they want to own. Most first-time 62% buyers we interviewed could point to a specific of first-time owners mentioned trip that triggered this desire to own a boat. Thus, a participatory driver as their participation is the most important factor in primary trigger in their decision triggering one’s decision to own. to buy a boat. • 86% of recent, first-time owners said the feeling they get from boating is what drove them to buy a boat • At this point, 70% of recent, first-time owners took less than a year to move from the Desire stage to the Do stage

And when we asked first-time owners in our survey what first made them start thinking about owning a boat, we found that their responses were most often tied to participation or participatory experiences. In sum, 62% of first-time owners mentioned a participatory driver as their primary trigger in their decision to buy a boat.

Chapter 4 The first-time boat buyer’s journey to boat ownership 38 “It all started with an idea ... we were out on that sunset cruise, just out with the family ... that was the time I realized this is something I could do whenever I wanted to.”

— Male, 30, first-time boat buyer

39 When thinking about going boating generally, they have a fair amount of knowledge around how they’d spend their time. But when it comes to actually accessing a boat, they need some help. Only 2 in 5 know where to rent a boat, and about 1 in 5 have friends who would loan them a boat. Even less than that know how to charter a boat. Finally, there’s very low familiarity with boat clubs.

Participation: Percent of first-time buyers What they know today who agreed with statement

I have a good idea of how I’d spend time on a boat 67% (e.g., watersports, fishing, hanging out with friends)

I have a good idea of where I’d go boating 65%

I know who I’d invite to go boating with me 63%

I know where the nearest marina is 51%

I know where to rent a boat 39%

I know people who would “loan” 19% me their boat(s)

I know how to arrange a charter boat trip 17%

I’m familiar with boat clubs 8%

None of these 6%

Chapter 4 The first-time boat buyer’s journey to boat ownership 40 There’s also a broad group of occasions in which they would think to go boating, generally. Vacations and holidays are popular boating triggers, as is free time on the weekends. Taking advantage of warm weather is another thing that prompts thoughts of going boating for first-time boat buyers.

When do you think about Percent of first-time buyers going boating? who agreed with statement

When I’m on vacation 63%

When I want to take advantage 55% of warm weather

When I have free time on the weekend 53%

When I’m planning for free time 49% on the weekend

When I’m planning for a holiday 49% (e.g., Memorial Day weekend, the Fourth of July)

When I want to go fishing 48%

When I’m planning for friends and/or 47% family to get together

When I am really stressed and need to relax 40%

When I visit a vacation home (e.g., lake house, cabin, 35% beach house)

If I hadn’t been on the water in a while 35% and need to get back out

When I want to entertain people 29%

If I’m planning for a special occasion 28% (e.g., birthday, party)

When I want to do watersports 27%

Other 1%

Chapter 4 The first-time boat buyer’s journey to boat ownership 41 However, while it’s on a boat that they decide to own, there are a few factors that can help them decide “when” and on which trip that decision might occur. These key influencers didn’t necessarily influence their decision to buy a boat over something else, but influenced the timing of their purchase. And they are often tied to one stage in life, too.

What influenced your decision Percent of first-time owners to buy a boat? who agreed with statement

I felt like I needed something new 38% and different in my life

I had more disposable income (e.g., received 35% a raise, finished paying off a loan)

My friends and/or family started 33% going boating more often

I had more free time (e.g., children left home, 30% I retired)

I was renting or borrowing boats enough that 19% it made more financial sense to own one

I moved to a community where lots of 19% people go boating

I had children 16%

I wanted to celebrate a major milestone 13% (e.g., birthday, retirement)

I moved to a community where the 12% weather was nicer

I purchased a vacation home on/near a body 10% of water where I wanted to go boating

I felt professional pressure to buy one (e.g., entertain 8% clients, entertain employees)

I purchased an RV 5%

Other 3%

None of the above 3%

Chapter 4 The first-time boat buyer’s journey to boat ownership 42 The spark of desire for boat between Desire and Do. But when people enter ownership tends to be lit during the desire stage, we found that their life stage a few key life stages. often plays a role in how quickly they envision buying a boat. Below are some qualitative We also found that this trigger moment in Desire findings from our ethnographic interviews. often happens during a “lift-off” moment in • Boaters who plan to purchase a boat in life: when people were gearing up for their next conjunction with buying a lake house or cabin life stage, and in the midst of planning for it. have a much more defined and stable length For example: An engagement or first marriage of purchase journey. In these cases, the main sparks conversation about the life a couple goal is the cabin or a shore home and a boat wants to live together and, often, a boat is part is a necessary addition. Generally speaking, if of that discussion. And 38% of recent owners this triggered the boat purchase, then we can bought their boat because they felt they needed expect it to last one to two years. something new in their life. Here are a few key life stages that came up during the qualitative “We got the idea we wanted a boat on the lake interviews: … The cabin comes first. We know we want a • Engagement pontoon.” – Male, 32, first-time buyer • Recently married • Having young children (creating a tradition, • Gear Guys and others who have made big- weekend activity, etc.) ticket leisure purchases in the past have a • Graduating from pre-school (learning how to much shorter purchase cycle (one month to swim, able to form memories, etc.) one year). They tend to be more impulsive • Starting fresh with a new/second marriage about their newfound passions and work • Older kids (self-sufficient) to obtain the toys they want as quickly as • Buying a vacation home possible. Their cycle lasts one year or less as • Kids in college/empty nesters (more long as the finances are in place. disposable income, more free time, etc.) • Retirement (entertaining the grandkids, more “The process starts with the notion I want it. If free time, more disposable income, etc.) I see something and I think it’s fun, or someone invites me to do it and I don’t want to rent and The role of life stage in borrow. I want it.” – Male, 38, first-time buyer the purchase process • Individuals who are financially secure and 70% of people take less than a year to move close to retirement have a shorter purchase

Chapter 4 The first-time boat buyer’s journey to boat ownership 43 cycle because they have overcome financial have to wait until they feel safe bringing their burdens earlier in life. (six months to two years) children on board the boat. (three to five years)

“This is a good phase in life. The house is paid “I would be definitely interested in it, as they’re off, we’re secure in our jobs. Don’t have a lot of getting older, I’m trying to find other activities financial issues right now.” that they can do. Once they have the ability to – Male, 59, first-time buyer swim, it’s only a two-week lesson.” –Male, 43, first-time buyer • Couples who are currently engaged note that a boat purchase will happen after the wedding Barriers they encounter and purchase of a first home. They have to consider other important milestones before Lack of access to boating. they can invest in a high-ticket leisure item. A boating experience is necessary to trigger the These couples express a high level of interest desire to own a boat. It doesn’t matter what in purchasing a boat soon after the marriage brand, model or type of boat it is, either. Rather, it’s because they want to have it as part of their simply an on-the-water experience that inspires family traditions and weekend activities. them to decide to own a boat. Thus, lack of access (three to five years) to boating is the primary barrier.

“Our wedding is my priority. I want to do How the boating industry that first. Then the house. Then the boat. It’s can help probably two to three years down the line.” – Female, 45, first-time buyer Inspire people to get on the water. While there’s no magic number of trips required “It would have to be toward the end of next year. for desire to happen (for some, it happened the Probably around after the baby’s born. When first time they tried a jet ski; for others, they had I get my boat body back. He wants one. We’re boated all their lives), there are things we can do always at the beach. We’re going to do it.” to increase the odds that a trigger moment will – Female, 33, first-time buyer occur. Motivating people to get on the water more frequently is critical to growing the industry. • Parents who have small children have a long purchase cycle. They want to be able to Educate them on all the different ways establish traditions and have more activities to get on the water. they can do with their families. However, they From improving access to introducing people in this stage to different types of boating.

Chapter 4 The first-time boat buyer’s journey to boat ownership 44 3 Dream

They start to imagine their life on the water.

Once they decide to own a boat, they don’t immediately start shopping. In fact, they start dreaming. How will they use the boat? Where will they go? Who will they go with? What will life on the water look like for them?

This dream isn’t all about the boat, either. Rather, In their own words: it’s about the things they’ll do, the waters they’ll explore, the people that they’ll invite along for the “I’m planning to docking right off Delaware Avenue ride. This is a very emotional and romantic stage ... Sometimes [I] might want to host a party, have a as they start to picture this new life they will lead. guys night, poker night, or cig night on the boat ...” And the clearer their picture of life on the water, – Male, 38, first-time buyer the closer they are to purchase. The boat is only a part of this dream and is a means to an end. “It’s going to be like a little getaway from the land ... riding out on the water and maybe seeing dolphins ...” – Female, 30, first-time buyer

“[I’d invite] my sister, her husband, and their kids, my mom and her husband, friends. As many people can get on there ... – Female, 43, first-time buyer

Chapter 4 The first-time boat buyer’s journey to boat ownership 45 “It’s going to be magical. Snorkeling does it for me. It’s just a different world. And you see the corals, and you see a lobster ... Just being out there, in the coral reefs. It’s calming. I’m at home under the water.”

— Male, 37, first-time boat buyer

46 To help make this dream clearer, they participate in lots of different activities.

Top activities during the Percent of first-time owners Dream stage who agreed with statement

Researched online websites and/or 63% forums and/or message boards

Visited a boat dealer(s) 54%

Sought advice from friends and/or family 50%

Researched costs of different boats 35%

Attended a boat show 32%

Visited bait shop/fishing retailers 25%

Explored boating conversations in 22% social media

Sought advice from marina staff/dock masters 18%

Arranged a viewing of a boat for sale through a 18% private entity (e.g., Craigslist, driveway sale)

Gave away my contact information 9%

Other 1%

None of the above 1%

Chapter 4 The first-time boat buyer’s journey to boat ownership 47 Researching online

Going online was often the first place people went as they tried to bring clarity to their on-the-water dream. Of those that went online during this stage, the majority turned to search. They also looked at dealer and boat brand websites—even though they weren’t ready to buy, they were trying to learn about different types of boats. And there was no one source that they overwhelmingly used. Rather, it was a mix of different perspectives.

Where did you go to Percent of first-time Percent of first-time research online? buyers owners who owners overall went online

Search 63% 40%

A boat dealer’s website 57% 36%

A boat brand’s website 50% 32%

Online forums 41% 26%

Boating forums/review websites 35% 22%

General classifieds 26% 16%

Boat-specific classifieds 19% 12%

An independent boating website 10% 6%

Other 0% 0%

None of these 0% 0%

Chapter 4 The first-time boat buyer’s journey to boat ownership 48 In their own words:

“What I did for the initial search, was to “[Boat dealer] had everything I need to know about simply google “how to buy a sailboat.” my boat and it was somewhere local where if I had –Male, 42, first-time boat buyer any more questions I could easily go there and have someone help me.” “On my iPhone, I’ve pulled up a website by just – Female, 33, first-time boat buyer googling pontoon boats. I clicked on [the boat brand’s website], there are a variety of pictures “The first thing I did when researching for buying regarding lifestyle, construction, performance, a boat was to look online. I think that’s always a gear, etc.” – Female, 42, first-time boat buyer great place to start for any major purchase. After all, if I started my research process by going to a “So I started my search on Craigslist. To my boat dealer, I would—I can’t help but unintentionally surprise, there were many boats that I think I come up with aquatic metaphors—be a fish out of might be interested in. Plus, these people [who] water … I decided to look online first ... It brought want to sell their boats actually know their boats up a number of articles, including one from personally.” – Female, 47, first-time boat buyer [independent boating website].” –Male, 42, first-time boat buyer “Searching Craigslist for boats, called about this clean [boat I found].” “Doing research online was confusing. Not really –Male, 30, first-time boat buyer knowing boats, you don’t know what you are really looking for.” “This website [boat classified website] is great – Female, 37, first-time boat buyer because it provides pictures and videos of the boats with contact seller information … I learned that the “Shopping online seemed more difficult than it more descriptive people are in their ads the more should have [been]. Like the industry is behind the interested I am.” –Female, 33, first-time boat buyer times. There is a large amount of information out there but not a lot of places that have everything “Definitely the forum. I got so much great info about one needs. Lots of diligence is needed to find what basic stuff like marine carpet and what kind of body you want.” –Male, 27, first-time boat buyer filler to use and how much to expect to spend on maintenance.” – Female, 42, first-time boat buyer

Chapter 4 The first-time boat buyer’s journey to boat ownership 49 model that would best suit my needs. They played an integral role in my overall decision process for Visiting the dealer choosing the boat I purchased.” – Recent first-time owner As part of this process, many visit the dealer— even though they aren’t quite ready to buy. They “It was an informal visit. [I wasn’t] yet interested in want to see the boats up close to help inform their purchasing anything.” – Female, 32, recent owner on-the-water dream. They want to see which boat type is going to be the perfect fit for them. But for those evaluating their boat type in the dream stage, these first-time buyers often found In their own words: their interaction with the dealer left something to be desired. Here’s what they wished the dealer “I loved being able to go on to the pontoon boat and could have helped them with: experience it first-hand. It gave it a nice touch and made me want a boat more than ever!” “They should give proper information about their – Female, 39, first-time boat buyer product regardless of if customer is buying or just finding information.” – Recent first-time owner “We enjoyed the laid-back atmosphere as opposed to other boat dealers that we felt pressured us to “Comparing different brands/styles of boats, not make a deal that day or that we were wasting their just pushing for the newest/nicest one.” time since we weren’t in the market for a cabin – Recent first-time owner cruiser … It was non-pressured, informative and interesting, by not being pressured to make a deal “They treated me like I was not a serious buyer.” ‘today,’ I almost feel a sense of obligation to make – Recent first-time owner a deal with [boat dealer] when we make our final decision.” – Female, 49, first-time boat buyer “Would have felt more comfortable if they hadn’t tried to pressure me to buy right away.” “I went in like I knew nothing about boats and he – Recent first-time owner spent about two hours going over everything and showing differences between boats. It really made a “Most were all very anxious to make the sale, not as difference. I didn’t feel pressured or anything. I went anxious to satisfy my questions.” – Lapsed shopper in for this project only but left really considering a [boat brand and make].” “Give out more suggestions as to which boat fits you – Female, 37, first-time boat buyer most.” – Lapsed shopper

“I did learn several things from the boat dealer “Any information other than trying to get a sale staff, including choosing the right-size boat and would have been useful.” – Lapsed shopper

Chapter 4 The first-time boat buyer’s journey to boat ownership 50 Seeking advice from friends and family, unwilling to give out their contact details to and/or dockmasters/marina staff anyone. They are extremely hesitant to provide information that may qualify them as a lead. Getting advice from other people—either friends, marina staff or dealers—is crucial to their purchase • 66% of first-time buyers would only give out process, according to recent first-time owners. In contact details at the point of purchase total, 61% of first-time owners sought advice from • 49% of first-time buyers wouldn’t give out other people during this stage. And 72% of recent their contact details online when browsing owners said that hearing about other people’s • 49% of first-time buyers felt very experiences was moderately to very influential uncomfortable about giving out their contact on their process. But we also identified a major details at any point during the boat buying problem: 70% of first-time boat shoppers do not process have people in their lives they trust to give them advice on buying and owning a boat. In fact, only 9% of first-time boat owners gave away their contact information in this stage. And In their own words: here’s why: Consumers these days are smarter than ever. They’ve wised up because they’ve “I just want to say that just coming out to marinas likely been burned by aggressive sales people for a couple hours and talking to boaters is the from other industries in the past. When sharing greatest experience you can gather. Most people will why they don’t want to give away their contact give you all the information you need on boats. And information, here’s what they had to say: then ... more!” – Male, 61, first-time boat buyer “Because I’m still researching and comparing “Older guys at the yacht club bar. Nothing came options, I didn’t want to give personal information.” even close to that. Also a marine solar panel sales – Male, 29, recent owner guy who has seen a lot.” –Male, 53, recent owner “They call too much and I want control of that.” – Male, 54, recent owner They will not give out their personal information during this time, no “I’m not ready to buy just yet. When I am, I will matter how much dealers and brands leave my contact information. I do not want to want them to. be hounded by sales people until I’m ready to purchase.” – Female, 44, first-time boat buyer During this time, first-time boat buyers are

Chapter 4 The first-time boat buyer’s journey to boat ownership 51 Rather, they first decide what they want to do on Barriers They Encounter the water and the purpose of the boat itself before they even begin to think about shopping for one. An overwhelming amount of information. We can help open their eyes to the all the different things they can do on the water, and help them First-time boat buyers are novices: This is the understand what boat type is the perfect fit for moment they realize how many different options them. they have, and it’s difficult to understand what’s the right choice for them. There are so many Introduce them to helpful resources. different choices they must make, and new factors to consider (Should they buy new or used? What make Beyond providing clear and comprehensive and model? What’s the right horsepower? Etc.). information in one place, we can introduce first- time boat buyers to experts to help them along A lack of comprehensive resources. the way. From ambassador programs to specialty forums, we have the power to connect them to the 42% of recent, first-time owners said there was no resources and information they’re looking for. one place that told them everything they needed to know. Take a page from a similar playbook.

They don’t have people to turn to. Our first-time boat buyer, like most modern consumers, is trained to expect simplicity, 70% of people within a year of buying their first transparency, and clarity when shopping for a boat don’t have people they trust to give them boat. This is because of innovations in the real advice on how to buy. estate industry (Zillow, Trulia, etc.), automotive (Kelly Blue Book, Consumer Reports, etc.) and even retail shopping experiences like Amazon. Like How the boating industry it or not, today’s boat buyers expect this kind of can help experience, and the boating industry must step up to meet these high expectations. Make it simple for them to connect their dreams to reality.

Help them shape this dream—that’s the best way to introduce them to a boat, through the life they are looking to live on the water. They don’t decide to own a boat and then begin shopping for it.

Chapter 4 The first-time boat buyer’s journey to boat ownership 52 4 Decide

They navigate the realities of buying and owning a boat

Once they’ve established the purpose of their boat and have a general sense of what boat they’d like to buy, they enter the “decide” phase. And 79% of recent owners entered this stage within six months of purchase. It’s here they actually buy their boat—that is, if that can overcome some “I wish the dealer had been able to give me more pretty big barriers. of a personalized help and assistance without making me seem dumb for not knowing some basic terminology that I was unfamiliar with.” To watch a short video on this phase – Lapsed shopper  of the journey to purchase, visit: http://www.youtube.com/watch?v=81e_ “I have come to understand there’s a lot more to E5Qpry8&t=0m6s ownership than just having a pontoon on a river somewhere. There’s upkeep and storage, there’s licensing, etc.” – First-time buyer “As soon as the dealers find out you don’t want to spend a lot of money, they seem to dismiss you and “Remember that there are some hidden costs to move on to customers who have more money to worry about—insurance, storage, maintenance, etc.” spend.” – Recent owner - Lapsed shopper

Chapter 4 The first-time boat buyer’s journey to boat ownership 53 Let’s take a deeper look at what they are doing during this stage. Alongside expected shopping activities, they are still reaching out for help. From talking to their family and friends, to attending boat shows, to researching the costs of different boats, they are still working hard to inform themselves as they navigate the realities of buying, and owning, a boat.

Top activities during the Percent of first-time owners Decide stage who agreed with statement

Visited a boat dealer(s) 65%

Sought advice from friends and/or family 34%

Researched costs of different boats 27%

Arranged a viewing of a boat for sale through a 23% private entity (e.g., Craigslist, driveway sale)

Attended a boat show 23%

Visited bait shop/fishing retailers 19%

Sought advice from marina staff/dock masters 13%

Gave away my contact information 12%

Other 2%

None of the above 1%

Researched online websites and/or 0% forums and/or message boards

Explored boating conversations in 0% social media

Chapter 4 The first-time boat buyer’s journey to boat ownership 54 The reality of buying a boat. “Listen to my needs and communicate better with transparency.” – Recent owner When it comes to actually buying the boat, this group doesn’t expect to have a pleasant “I wish the boat dealer was more straightforward experience. And, for recent owners reflecting on with the entire process.” – Recent owner their first boat purchase, it was a lot more difficult than they expected. “I felt like I needed to do a lot of research before I visited my first dealership” “The process of buying a boat was more difficult Percent who agreed with statement than I thought it was going to be” • 57% recent owners Percent who agreed with statement • 60% lapsed shoppers • 36% recent owners • 40% lapsed shoppers In fact, the number one piece of advice people who have been through this process have to For those who want to buy a boat from a dealer give? 60% recommended doing lots of research (we estimate about two-thirds of them do), they before buying. Overall, 66% of lapsed first-time feel the need to arm themselves with information boat shoppers said they didn’t have a helpful to do battle at purchase. They aren’t expecting to experience at the dealership. And 7% of lapsed have a pleasant experience. first-time shoppers said an intimidating dealer was their primary barrier to buying a boat. “That’s one of the reasons I cannot bring myself to a dealer. They are so boring, and they have only one thing in mind, sell.” – Recent owner

“Some people are going to try and drag you over the coals, and get every last dime out of you.” – first-time boat buyer

Chapter 4 The first-time boat buyer’s journey to boat ownership 55 “I just wish they would have looked at me as a person, not a paycheck.”

— Lapsed shopper

56 The reality of owning. Here’s what they wished the dealer would have helped them with: On top of all that, they begin to realize that there’s a lot more to owning than previously thought. “They didn’t go over the basics of owning a boat.” 64% of first-time boat buyers aren’t confident that – Recent owner they know enough about boats to buy one just yet. Imagine if you wanted to buy a car, and you don’t “Places to go for good upkeep of my boat and know how to drive; That would be an impediment what to do when something goes wrong.” to buying a car. – Recent owner

• 64% of people looking to purchase their first boat said that they didn’t know enough about boat ownership to buy one.

• 21% of lapsed, first-time boat shoppers said their biggest barrier to buying a boat was that they felt like they didn’t know enough about boat ownership.

• 39% of recent, first-time boat owners wished there were more resources to help them during their journey to purchase. 52% of lapsed, first- time boat shoppers said the same thing.

Chapter 4 The first-time boat buyer’s journey to boat ownership 57 Barriers to Boat Ownership Percent of lapsed shoppers who agreed with statement

Surprise costs that I didn’t anticipate when I initially 42% set out to buy a boat

I couldn’t find a boat in my price range 35%

An event, or series of events, in my life that made me 33% re-evaluate my priorities

I felt like I didn’t know enough about boat ownership 21% to own one

A close family member/ friend purchased a boat that I 12% could use frequently

Learning about how to buy a boat was too overwhelming 10%

I was intimidated by the boat dealer(s) 7%

The shopping process was too difficult 5%

I moved to a place where it wasn’t easy to go boating/ 4% store a boat

I decided to purchase another vehicle for recreational 3% use instead (e.g., an RV, a snowmobile, an ATV)

I signed up for a boat club instead 0%

Other 13%

Chapter 4 The first-time boat buyer’s journey to boat ownership 58 Hidden costs of ownership derail them “Any hidden fees and costs that would come at the dealership. with each brand or model.” – Recent owner

As they navigate the realities of buying and owning “Some of the hidden expenses.” – Recent owner a boat, it’s in this stage where they find out about what they perceive as hidden costs. While these ”I wish he had told me about insurance.” hidden costs were a big issue for recent owners, – Lapsed shopper they were even more challenging for the lapsed shoppers. “All the small details. What insurance is the best. What docking space costs the least, etc.” “There were lots of hidden costs I wasn’t aware of. “ - Lapsed shopper Percent who agreed with statement • 38% recent owners “Long-term costs.” - Lapsed shopper • 49% lapsed shoppers “Long-term costs and insurance options.” What’s interesting is that the cost of the boat - Lapsed shopper wasn’t the primary deterrent (though finding a boat within their price range was also a significant “Same as the other answer: more detail regarding barrier). People entering this stage fully intended insurance coverage and liability.” - Lapsed shopper on making the investment to buy. Rather, it’s the fact that these costs are unanticipated. A “All of the hidden costs.” - Lapsed shopper whopping 42% of lapsed first-time boat shoppers said hidden costs were the biggest barrier to Note that the costs they are looking for more buying a boat. transparency around aren’t related to MSRP or the dealer’s cut. Rather, they are related to ownership. When it comes to hidden costs, here’s what they Things like service costs, insurance, taxes and wish the dealer would have told them about. storage are top concerns for these people, and they don’t anticipate them (or even consider them) “I would have liked to have heard more about the when they think about boat ownership. In addition cost of maintaining a boat.” – Recent owner to bringing transparency to these costs, dealers also have the opportunity to help them navigate “How much an average boat slip costs.” these unexpected expenses. – Recent owner

Chapter 4 The first-time boat buyer’s journey to boat ownership 59 Barriers they encounter Finally, be transparent about the total They feel intimidated and unprepared to cost and responsibilities. go into dealerships. Hidden costs are a hurdle that first-time buyers They feel like they have to “school up” and get need help overcoming. Beyond just being ready to go in and meet that experience. transparent about the costs of ownership, help them do it. From budgeting, to unique financing They discover hidden costs along the way that options, to special packages, to simple contact they weren’t expecting when they were dreaming lists of suggested maintenance or storage options about being boat owners. in your area: your sale is dependent on them overcoming these issues. It’s in your best interest Here’s what we can do to help to help them do just that.

Start by understanding their original dream of ownership.

Help them keep their eyes of the prize. To them, it’s not just another purchase: It’s extremely emotional and they’re anxious about all the different components of the process. Each one of our segments had a different vision for what they wanted to do on the water. That’s what dealers have the power to do: make this dream come true.

Balance the need to serve with the need to sell.

First-time buyers feel vulnerable and susceptible to being taken advantage of. They’re coming in with their guard up. Help make this process easier for them and understand that while they might not buy the most expensive boat, this is an opportunity to build a relationship with this buyer that may yield more boats down the road.

Chapter 4 The first-time boat buyer’s journey to boat ownership 60 5 Do

They experience the joy of ownership.

This is where they experience the joys of ownership. After they’ve made it through all of the ups and downs of their journey to purchase, the finally own. And overall, there are high levels of enthusiasm for boating during their first year. People don’t regret their decision to buy, and we see high satisfaction rates across the Here’s what we can do to help board. Boating lives up to or often exceeds their expectations. Fuel their passion for boating and inspire them to use their boats more.

Now that you own your boat, to After all, the only way they’ll feel their investment what extent are you happy with was worth it is by actually taking the boat out on your purchase? the water.

• 9–10 very happy Additionally, help them through the first • 7–8 happy year of ownership. • 1–6 unhappy This is the time when they are developing boating 76% rituals and relationships that will last for the duration of their ownership years. From who will service their boat to where they’ll dock it, help them establish great relationships that will serve them for years to come. 21%

3% Simplify. Simplify. Simplify.

Owners But beyond that, we can hold their hand. We can remind them of importance maintenance dates, or help them keep track of all of their warranty documents. Simplifying ownership will make them happier owners.

Chapter 4 The first-time boat buyer’s journey to boat ownership 61 Chapter 5:

Conclusion

62 Conclusion and exciting, but the buying process is a daunting one. It’s overwhelming, complicated, and at times, The shrinking first-time boat buyer represents a stressful. It’s no surprise that today, only the significant challenge for the industry. But, with extremely passionate are making it all the way the support of the dealers and manufacturers, through the journey to ownership. we now have a strategic roadmap for taking this crisis head-on. It certainly won’t be easy: No one If you take nothing else away from this report, group can be held solely responsible for reversing please remember the following: this trend. This is partially a marketing problem, partially a sales problem and partially a product • First-time boat buyers are generation- problem. Thus, a deep and integrated partnership agnostic. They come from all different ages, between boat dealers, manufacturers and backgrounds and income levels. Instead, their Discover Boating is the best way to solve it. differences are driven by their mindsets and motivations. Fortunately, we finally have the answers we • Getting people on the water, no matter the need to get moving. boat type, is the single most important thing we can do if we want more people to consider We know more about first-time boat buyers ownership. It’s the number-one trigger. So than ever before. We’ve identified six segments, supporting participation initiatives at any each which may present a unique opportunity to level in any form is within the industry’s best your business. We’ve given you insight into how interest. to recognize and help these people when they • First-time buyers don’t immediately move from engage with your brands or dealers. deciding they want to own a boat to shopping at a dealership. They begin dreaming about We’ve also identified how they plan to buy a the life they want to live on the water— all of boat. From the moment the spark of desire for the activities and experiences a boat will bring ownership is lit, to the moment they take the boat them. This is an important part of the process, off of the lot, we know the activities they’re doing because it helps them understand what boat and the question’s they are asking. type is right for them. • We need to let first-time boat buyers come to We also know that the journey to ownership is us, first. This is a group that wants to be left paved with lots of emotional highs and lows alone until they get to the shopping process in for those moving through it. Dreaming about the Decide phase. Hounding them with calls everything that a boat can offer certainly is fun

Chapter 5 Conclusion 63 from sales staff will only serve to turn off this group of people.

• In Decide, the journey begins to get difficult. Put yourself in their shoes. It’s a complex process they’re about to begin, so think of yourself as a guide first, salesperson second. • The worst thing we can do is try to obscure the cost of boat ownership. It’s the hidden costs—not the cost of the boat itself—that derail first-time buyer boat purchases. We need to help them better anticipate these fees and help make the costs of ownership more manageable and digestible.

Today, we’re better positioned than ever to help first-time boat buyers. Together, we have the power to make this process easier. After all, we’re the experts: We have the knowledge and know- how to help these people make their dream of boat ownership come true.

Chapter 5 Conclusion 64 Acknowlegements

Acknowlegements

This report is the direct result of an ambitious research program that required the cooperation and contributions of multiple organizations and individuals. Our team would like to gratefully acknowledge all the people that made this report possible.

• Grow Boating Board of Directors • Info-Link Technologies, Inc. 2016 • Avala • The Staff of Grow Boating and NMMA • MRAA • Olson

Chapter 5 Conclusion 65 66